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2019 (5) TMI 2002 - AT - Income TaxAddition u/s 68 - only objection of the AO is this that the credit-worthiness of the investor is in doubt and this observation of the AO is on this basis alone that the investor has incurred huge losses in calendar years 2003, 2004 and 2006 - HELD THAT:- As we have seen that even after reducing the losses incurred in these three years from the income earned by the investor in 2000, 2001, 2002 and 2005, net income of the investor comes to $ 33,12,256 as against remittance by him of only about $ 10 Lakhs. Hence in our considered opinion, the addition made by the AO is not justified simply on this basis that since the investor has incurred losses and the assessee has not furnished cash flow statement, there is no creditworthiness of the investor. In our considered opinion, this objection of the AO is not valid for making addition of this huge amount particularly when the investor has remitted money from abroad through proper banking channel and even after adjusting or reducing the losses incurred by investor in three years i.e. 2003, 2004 and 2006 also, the remaining income of four years i.e. 2000, 2001, 2002 and 2005 is more than three times of the remittance received by the present assessee from the investor abroad. Considering these facts, we find no reason to interfere in the order of CIT(A) on this issue. Appeal of the revenue is dismissed.
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